Public procurement relies on competitive processes, set forth by Article 11 of the State
Finance Law and Article 5-A of the General Municipal Law, to obtain commodities,
services and technology. The Office of General Services (OGS) administers a large
centralized contracts program for acquisitions of commodities, services and technology
by state agencies, local governments, the educational community and certain not-for-profit
organizations. The concept of which these contracts are based is the State looks at the
combined and common needs of state agencies and authorized users and then leverages
its buying power to achieve cost savings and efficiencies.

This hearing will review the benefits and disadvantages the use of centralized contracts have
for the State, its local subdivisions, the educational community, and small businesses.

Please see the reverse side for a list of questions to which witnesses may direct their testimony,
and for a description of the bills that will be discussed at the hearing.

In order to meet the needs of those who may have a disability, the Assembly, in accordance with
its policy of non-discrimination on the basis of disability, as well as the 1990 Americans with
Disabilities Act (ADA), has made its facilities and services available to all individuals with
disabilities. For individuals with disabilities, accommodations will be provided, upon reasonable
request, to afford such individuals access and admission to Assembly facilities and activities.

RoAnn M. Destito, Chair
Committee on Governmental Operations

James Brennan, Chair
Committee on Cities

Catherine Nolan, Chair
Committee on Education

Deborah J. Glick, Chair
Committee on Higher Education

Sam Hoyt, Chair
Committee on Local Governments

Mark Weprin, Chair
Committee on Small Business

SELECTED ISSUES TO WHICH WITNESSES MAY DIRECT THEIR TESTIMONY:

Do the provisions of the State Finance Law, specifically sections 163(3) and (4),
limit state agencies' ability to use the bid process to obtain a commodity, service,
or technology?

How much annual business does the State procure through centralized contracts?
Does the State save money through the use of centralized contracts? What
percentage of purchases from centralized contracts are obtained from small
businesses and MWBEs?

How does the State leverage its buying power in order to minimize cost of commodities,
services, and technology? How effective is the State in tracking and monitoring purchases
made by all entities (State agencies, local governments, and not-for-profits) from centralized
state contracts? Is this purchasing experience considered when the State negotiates a new
contract for the same purpose?

What impact have recent reforms in response to procurement wrongdoing and subsequent
auditing had on the use of centralized contracts by school districts and local governments?

Does the use of centralized contracts impede participation in state and municipal procurements
by small businesses? What is the impact of centralized contracts on small businesses? What
constraints, if any, limit small business participation in centralized contracts?

What changes, if any, should be made to ensure that New York State is doing business with
our small businesses?

Should centralized contracts be expanded to include more types of services or commodities?
Should participation in centralized contracts be changed?

What impact would regional centralized contracts have on the State, local governments, and
small businesses?

What training, if any, should be required of state and local government procurement officers?
Who should be responsible for providing the training?

PUBLIC HEARING REPLY FORM

Persons wishing to present testimony at the public hearing are requested to
complete this reply form as soon as possible and mail it to:

I plan to attend the following public hearing on Procurement to be conducted by the Assembly
Committees on Governmental Operations, Local Governments, Cities, Small Business, Higher
Education, and Education and the Commission on Government Administration on
February 26, 2008.

I plan to make a public statement at the hearing. My statement will be limited to ten minutes,
and I will answer any questions which may arise. I will provide 15 copies of my prepared
statement.

I would like to be added to the Committee mailing list for notices and reports.